4-1 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Chapter 4 Decision Support.

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Chapter 4Chapter 4

Decision Support and Artificial Decision Support and Artificial IntelligenceIntelligence

Brainpower for Your BusinessBrainpower for Your Business

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IntroductionIntroduction

Types of computer-aided decision support. Types of computer-aided decision support.

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Management Problem solving Management Problem solving ModelModel

Problem or opportunityProblem or opportunity ObjectivesObjectives AlternativesAlternatives Analysis of alternativesAnalysis of alternatives RecommendationRecommendation ImplementationImplementation

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Decisions, Decisions, Decisions, Decisions, DecisionsDecisions

How You Make a DecisionHow You Make a Decision Four phases of Four phases of

decision decision makingmaking

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Decisions, Decisions, Decisions, Decisions, DecisionsDecisions

Types of Decisions You FaceTypes of Decisions You Face

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Decision Support SystemsDecision Support Systems

Decision support system (DSS)Decision support system (DSS) - highly flexible and - highly flexible and interactive IT system that is designed to support interactive IT system that is designed to support decision making when the problem is not structured. decision making when the problem is not structured.

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Decision Support Systems Decision Support Systems Components of a Decision Support SystemComponents of a Decision Support System

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Collaboration SystemCollaboration System

Collaboration Collaboration systemsystem – software – software that is designed that is designed specifically to specifically to improve the improve the performance of performance of teams by supporting teams by supporting the sharing and flow the sharing and flow of information.of information.

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Geographic Information SystemsGeographic Information Systems Geographic information system (GIS)Geographic information system (GIS) - -

a decision support system designed to a decision support system designed to work with spatial information. work with spatial information.

Spatial information is any information that Spatial information is any information that can be shown in map form, such as roads, can be shown in map form, such as roads, the distribution of bald eagle populations, the distribution of bald eagle populations, and the layout of electrical lines.and the layout of electrical lines.

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Geographic Information SystemsGeographic Information Systems

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Artificial IntelligenceArtificial Intelligence

Artificial intelligence (AI)Artificial intelligence (AI) - the science - the science of making machines imitate human of making machines imitate human thinking and behavior. thinking and behavior.

RobotRobot - mechanical device equipped - mechanical device equipped with simulated human senses and the with simulated human senses and the capability of taking action on its own. capability of taking action on its own.

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Artificial IntelligenceArtificial Intelligence

The AI systems that businesses use The AI systems that businesses use most can be classified into four most can be classified into four categories:categories:

1.1. Expert systemsExpert systems

2.2. Neural networksNeural networks

3.3. Genetic algorithmsGenetic algorithms

4.4. Intelligent agentsIntelligent agents

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Expert SystemsExpert Systems

Expert system, or knowledge-based Expert system, or knowledge-based system system - artificial intelligence system that - artificial intelligence system that applies reasoning capabilities to reach a applies reasoning capabilities to reach a conclusion. conclusion.

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Expert SystemsExpert SystemsComponents of an Expert SystemComponents of an Expert System

Expert systems are good for diagnostic (what’s Expert systems are good for diagnostic (what’s wrong?) and prescriptive (what to do?) problems.wrong?) and prescriptive (what to do?) problems.

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Expert SystemsExpert SystemsComponents of an Expert SystemComponents of an Expert System

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Expert SystemsExpert SystemsWhat Expert Systems Can and Can’t DoWhat Expert Systems Can and Can’t Do

An expert system can:An expert system can: Reduce errorsReduce errors Improve customer serviceImprove customer service Reduce costsReduce costs

An expert system can’t:An expert system can’t: Use common senseUse common sense Automate all processesAutomate all processes

On Your Own

Traffic LightsRevisited(p. 199)(p. 199)

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Neural NetworksNeural Networks

Neural networkNeural network (often called an (often called an artificial artificial neural networkneural network oror ANNANN) - an artificial ) - an artificial intelligence system that is capable of intelligence system that is capable of finding and differentiating patterns. finding and differentiating patterns.

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Neural Networks Neural Networks Types of Neural NetworksTypes of Neural Networks

Self-organizing neural Self-organizing neural networknetwork - - finds patterns and finds patterns and relationships in vast amounts relationships in vast amounts of data by itself. of data by itself.

Back-propagation neural Back-propagation neural network - network - a neural network a neural network trained by someone. trained by someone.

Team Work

How Would YouClassify People?

(p. 202)(p. 202)

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Neural NetworksNeural Networks Inside a Neural NetworkInside a Neural Network

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Genetic AlgorithmsGenetic Algorithms

Genetic algorithmGenetic algorithm - - an artificial an artificial intelligence system that mimics the intelligence system that mimics the evolutionary, survival-of-the-fittest process evolutionary, survival-of-the-fittest process to generate increasingly better solutions to to generate increasingly better solutions to a problem. a problem.

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Genetic AlgorithmsGenetic Algorithms

Genetic algorithms use three concepts of Genetic algorithms use three concepts of evolution:evolution: Selection Selection — survival of the fittest. — survival of the fittest. Crossover Crossover — — combining portions of good combining portions of good

outcomes in the hope of creating an even outcomes in the hope of creating an even better outcome.better outcome.

Mutation Mutation — — randomly trying combinations randomly trying combinations and evaluating the success (or failure) of the and evaluating the success (or failure) of the outcome.outcome.

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Intelligent AgentsIntelligent Agents

Intelligent agentIntelligent agent - software that assists - software that assists you, or acts on your behalf, in performing you, or acts on your behalf, in performing repetitive computer-related tasks. repetitive computer-related tasks.

Four types of intelligent agents include:Four types of intelligent agents include: Buyer agents or shopping botsBuyer agents or shopping bots User or personal agentsUser or personal agents Monitoring-and-surveillance or predictive agentsMonitoring-and-surveillance or predictive agents Data-mining agentsData-mining agents